9. CLARE CURRAN (Labour—Dunedin South) Link to this
to the Minister for Communications and Information Technology
What is the Government’s response to a recently released Treasury report warning that it will cost between $5.3 billion and $10.4 billion to connect 75 percent of New Zealand homes with ultra-fast broadband, given this Government’s election promise to spend $1.5 billion to achieve this goal?
Hon STEVEN JOYCE (Minister for Communications and Information Technology) Link to this
The report that the member refers to is a report that was written for Treasury, not by Treasury—which, Treasury assures me, is an important distinction. It was written by a consultant, Dr Murray Milner, and was published on the Ministry of Economic Development website 4 weeks ago. It signals a wide range of deployment costs, which vary considerably depending upon the deployment method used, the level of take-up, the technology chosen, the level of consumer expenditure, and whether the expenditure is an active or passive-level service. The figures quoted in the member’s question of between $5.3 billion and $10.4 billion are at the extreme end of the range; the report also quotes much lower figures.
Can the Minister confirm that his Government’s $1.5 billion election promise to deliver fibre-optics to the home does include the cost of actually connecting to the home?
As I said to the member, there is a wide range of possibilities. It does not necessarily include the cost of connecting 100 percent of homes, but, with the level of co-investment from the private sector that the Government expects, and an appropriate level of use of existing fibre-optic infrastructure, we believe we will get most, if not all, of the way to our goal of providing ultra-fast broadband availability to 75 percent of New Zealand homes.
Michael Woodhouse Link to this
What has been the reaction from submitters to the Government’s ultra-fast broadband proposal?
Hon Darren HughesThank you, Darren; sartorial assistance is always appreciated. The New Zealand Regional Fibre Group said that the “Government’s Broadband Investment proposal … will leap frog New Zealand to world class broadband.” InternetNZ said it “supports the broad approach outlined of an open access network providing dark fibre and some wholesale services.” Finally, Telecom has stated that the Government has shown a “bold vision” for New Zealand’s broadband future, which it supports and shares.